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Higher Costs: Henkel Stocks Eventually Tumble: Henkel with Strong 1st Quarter Sales Growth – 2022 Profitability Target Lowered | news

According to the announcement, the DAX Group now expects an adjusted return on sales (EBIT margin) of 9.0 to 11.0 percent for 2022. So far, 11.5-13.5 percent have been targeted. . This year it was not possible to fully compensate for the sharply rising prices of direct materials and logistics.

On the other hand, the group expects a stronger increase in sales this year. Henkel now expects organic sales growth of 3.5 to 5.5 percent at the group level in 2022. The group had previously forecast growth of 2.0-4.0%.

“We have never experienced such dimensions,” commented CEO Carsten Knobel, in view of the high prices of the materials. The war in Ukraine would have aggravated the already “extraordinarily tense” situation on commodity markets and global supply chains. When it comes to materials, petrochemical raw materials and palm kernel oil have become much more expensive. Henkel obtains the latter mainly from Asia. However, Indonesia’s decision to largely ban palm oil exports is not expected to further impact supply, Chief Financial Officer Marco Swoboda said in a conference call.

Henkel now wants to take further countermeasures. “We counter these developments with targeted countermeasures, in particular further price and efficiency increases,” announced Knobel. However, the price increases could only be passed on with a delay.

Henkel with strong sales growth in the 1st quarter

Consumer goods group Henkel significantly increased sales in the first quarter thanks to the good adhesives business. As the company surprisingly announced, organic sales increased 7.1% to around € 5.3 billion in the three months. Analysts had only expected a 4.3% increase. “The sales growth was mainly due to the Adhesive Technologies business unit, which reported organic double-digit sales growth of 10.7% in the first quarter, according to preliminary data,” says Henkel.

Based on preliminary data, the Beauty Care business unit reported a slight decline in organic sales of 1.2%. The Laundry & Home Care business unit, on the other hand, achieved organic sales growth of 4.9% thanks to significant growth in the laundry detergents business.

Henkel intends to release detailed quarterly data on May 5th.

Goldman leaves Henkel on “Neutral” – 79 euro goal

US investment bank Goldman Sachs left Henkel’s rating at “neutral” with a price target of 79 euros. Based on the consumer goods group’s new targets, this year’s consensus estimates on earnings per share are expected to decline significantly, analyst Olivier Nicolai wrote in a study available on Friday. In a challenging market environment, he sees better opportunities for investors elsewhere in the industry.

JPMorgan leaves Henkel in “neutral” position after lowering earnings target

US bank JPMorgan left Henkel Henkel in a “neutral” position with a price target of 74 euros after sales figures and a bearish earnings forecast (EPS). According to an initial reaction available on Friday, analyst Celine Pannuti already expected strong pressure on the stock. It doesn’t appear that the consumer goods company can raise prices as quickly as it should.

The bearish forecast pushes Henkel to its lowest level since 2012

Henkel’s stock market history wrote another negative chapter on Friday. After the company’s forecasts were lowered, the consumer goods maker’s listed shares in the DAX fell to their lowest level since 2012.

At the end of trading, they lost 2.88 percent via XETRA to EUR 61.36. Price losses of nearly 31% since mid-January this year and nearly 56% from 2017’s record are proof of the newspaper’s rapid slide.

Canadian RBC bank analyst James Edwardes Jones spoke of a clear profit warning from Düsseldorf, which weighed on the mood.

FRANKFURT / DÜSSELDORF / NEW YORK (Dow Jones / dpa-AFX)

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